Assgn1 - than the cost of capital per unit of output D Yes...

Assignment 1Chapter 151.Hours of laborcars washedaverage product of labormarginal product of labor0001222252.53372.333248212.A) Marginal product of first unit of labor is 6.B) The marginal product of the 15thunit of labor is 6.C) 1200D) 600E) No, because the law of diminishing marginal return state that the resulting increments of product decreases beyond some point and eventually the marginal product of the input diminishes. However, in this case the marginal product of labor does not decrease or diminish, it stayed the same.F) No, because even though the output rises, the average production of labor and marginal production of labor does not change at all.3.A) Yes, because the unit of output when the marginal product of labor is 20 is lower than the cost of capital. B) If the firm was not minimizing costs, less labor should be used relative to capital because according to the law of marginal return, the marginal product of input eventually diminishes.

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